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A Nonlinear Supply-Driven Input-Output Model
- Source :
- Prague Economic Papers. 27:494-502
- Publication Year :
- 2018
- Publisher :
- Prague University of Economics and Business, 2018.
-
Abstract
- One of the major limitations of the supply-driven input-output (I-O) Ghosh model concerns its linear production function. Using the I-O table, this paper replaces the linear production function with the Cobb-Douglas (CD) production function within the supply-driven model. The two models are compared both theoretically and empirically. Nonlinear production function, relative substitutability of primary factors, and variability of the proportion of intermediate inputs over product levels are the characteristics of the proposed model. The consideration of sectors' Solow residual as Total Factor Productivity (TFP) of sectors is yet another characteristics of the proposed model. The model is also plausible in value added and supply shock computations.
- Subjects :
- Economics and Econometrics
Supply shock
Input–output model
05 social sciences
Function (mathematics)
010501 environmental sciences
Cobb–Douglas production function
01 natural sciences
Solow residual
Nonlinear system
0502 economics and business
Econometrics
Production (economics)
050207 economics
Total factor productivity
Finance
0105 earth and related environmental sciences
Mathematics
Subjects
Details
- ISSN :
- 2336730X and 12100455
- Volume :
- 27
- Database :
- OpenAIRE
- Journal :
- Prague Economic Papers
- Accession number :
- edsair.doi...........9ba3010ff686cbe1fef17bcebbbb4f8c
- Full Text :
- https://doi.org/10.18267/j.pep.657